GE2025: Important to make clear GST is taken from top and redistributed, says Shanmugam
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Business Times
10 hours ago
- Business Times
India's Modi vows to protect farmers, cuts tax, push for self-reliance amid Trump tariffs
[NEW DELHI] Indian Prime Minister Narendra Modi urged the country on Friday (Aug 15) to move towards more self-reliance, manufacture everything from fertilisers to jet engines and EV batteries, and vowed to protect farmers in the face of a trade conflict with Washington. With the punishing tariffs imposed on Indian exports by US President Donald Trump expected to hurt growth in the world's fastest growing major economy, Modi announced lower goods and services taxes (GST) from October – a move that could help boost consumption. He also announced India would set up a new defence system called 'Sudarshan Chakra' in the aftermath of India's four-day military conflict with Pakistan in May. He did not elaborate but a government statement said the system is aimed at neutralising enemy infiltrations and enhancing India's offensive capabilities. Indian defence and policy circles have informally referred to the Russian S-400 air defence system – which played a key role during the fighting with Pakistan – as Sudarshan Chakra, after a Hindu mythological weapon. Modi was addressing the nation on the occasion of its Independence Day at a time New Delhi has been struggling with Trump's tariffs and the collapse of trade talks, largely due to differences over imports of American farm and dairy products. 'Farmers, fishermen, cattle rearers are our top priorities,' Modi said in his customary annual address from the ramparts of the Red Fort in New Delhi. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Modi will stand like a wall against any policy that threatens their interests. India will never compromise when it comes to protecting the interests of our farmers,' he said. Modi did not mention the tariffs or the US in his speech that lasted nearly two hours. Last week, Trump imposed an additional 25 per cent tariff on Indian goods, citing New Delhi's continued imports of Russian oil, in a move that sharply escalated tensions between the two nations. The new import tax will raise duties on some Indian exports to as high as 50 per cent – among the highest levied on any US trading partner. Modi has never spoken about the tariffs directly, only alluding to them in a speech last week, where he swore to protect the interests of farmers, even if it came at a personal price. Farmers are a key political constituency in India and they violently protested against Modi's last big push to reform the sector, forcing him to repeal three farm laws in 2021 in what was a rare defeat for him. Although local manufacturing and self-reliance have been Modi's key focus areas for years now, the push is seen to have gained urgency amid ongoing global trade tensions and supply chain disruptions. 'The need of the hour is to take a resolve for building a strong India ... I want our traders, shopkeepers to display boards for 'Swadeshi' products,' Modi said, using the Hindi word for made in India goods. He said made in India semiconductor chips would hit the market by the end of this year and that India was pushing for self-reliance in producing critical minerals with exploration underway at more than 1,200 locations. Trump's tariffs threaten to disrupt India's access to its largest export market, where shipments totalled nearly US$87 billion in 2024, hitting sectors like textiles, footwear, shrimp, gems and jewellery. In retaliation, some supporters of Modi have sought to stoke anti-American sentiment and called for a boycott of US companies such as McDonald's, Coca-Cola, Amazon and Apple. Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases. Modi's promise to cut GST by October's Diwali festival, which encompasses one of India's biggest shopping seasons, follows previous commitments to overhaul it by reducing the number of rate brackets under the 2017 tax regime. A group of ministers have been preparing a report that will consider merging tax slabs and lowering rates on some products. In February, India cut personal income tax for some individuals to boost spending. Earlier this month, the central bank kept interest rates steady, following a 100 basis point cut this year so far. The government has proposed to the ministers' panel that it recommend reducing taxes on mass use items as well as on goods used by women, students and farmers to boost consumption and enhance affordability, the finance ministry said in an X post. The government will move towards making GST a simple tax with two rate slabs, one standard and another merit, it said. Special rates will be applicable only for a few select items. REUTERS
Straits Times
11 hours ago
- Straits Times
India PM Modi vows to protect farmers, cuts tax, pushes self-reliance amid Trump tariff tensions
Sign up now: Get ST's newsletters delivered to your inbox India's Prime Minister Narendra Modi spoke at length about several matters in a nearly two-hour speech during his annual address to the country. NEW DELHI - Indian Prime Minister Narendra Modi urged the country on Aug 15 to move towards more self-reliance, manufacture everything from fertilisers to jet engines and EV batteries, and vowed to protect farmers in the face of a trade conflict with Washington. With the punishing tariffs imposed on Indian exports by US President Donald Trump expected to hurt growth in the world's fastest growing major economy, Mr Modi announced lower goods and services taxes (GST) from October - a move that could help boost consumption. He also announced India would set up a new defence system called 'Sudarshan Chakra' in the aftermath of India's four-day military conflict with Pakistan in May. He did not elaborate but a government statement said the system is aimed at neutralising enemy infiltrations and enhancing India's offensive capabilities. Indian defence and policy circles have informally referred to the Russian S-400 air defence system - which played a key role during the fighting with Pakistan - as Sudarshan Chakra, after a Hindu mythological weapon. Mr Modi was addressing the nation on the occasion of its Independence Day at a time New Delhi has been struggling with Mr Trump's tariffs and the collapse of trade talks, largely due to differences over imports of American farm and dairy products. 'Farmers, fishermen, cattle rearers are our top priorities,' Mr Modi said in his customary annual address from the ramparts of the Red Fort in New Delhi. Top stories Swipe. Select. Stay informed. Singapore Ong Beng Seng fined $30k in case linked to former minister Iswaran after judge cites judicial mercy Asia Sun Haiyan, ex-China ambassador to S'pore, detained for questioning: Sources Singapore Jail for drink-driving cop in hit-and-run accident, victim suffered multiple fractures Life How do household bomb shelters in Singapore really work? Asia Johor authorities seize four Singapore-registered vehicles over illegal e-hailing Singapore Fresh launches drive surge in new private home sales in July 'Modi will stand like a wall against any policy that threatens their interests. India will never compromise when it comes to protecting the interests of our farmers,' he said. Mr Modi did not mention the tariffs or the US in his speech that lasted nearly two hours. On Aug 6, Mr Trump imposed an additional 25 per cent tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations. The new import tax will raise duties on some Indian exports to as high as 50 per cent - among the highest levied on any US trading partner. Mr Modi has never spoken about the tariffs directly, only alluding to them in a speech last week, where he swore to protect the interests of farmers, even if it came at a personal price. Farmers are a key political constituency in India and they violently protested against Mr Modi's last big push to reform the sector, forcing him to repeal three farm laws in 2021 in what was a rare defeat for him. Tax cuts to boost consumption Although local manufacturing and self-reliance have been Mr Modi's key focus areas for years now, the push is seen to have gained urgency amid ongoing global trade tensions and supply chain disruptions. 'The need of the hour is to take a resolve for building a strong India... I want our traders, shopkeepers to display boards for 'Swadeshi' products,' Mr Modi said, using the Hindi word for made in India goods. He said made in India semiconductor chips would hit the market by the end of this year and that India was pushing for self-reliance in producing critical minerals with exploration underway at more than 1,200 locations. Mr Trump's tariffs threaten to disrupt India's access to its largest export market, where shipments totalled nearly US$87 billion (S$111 billion) in 2024, hitting sectors like textiles, footwear, shrimp, gems and jewellery. In retaliation, some supporters of Mr Modi have sought to stoke anti-American sentiment and called for a boycott of US companies such as McDonald's, Coca-Cola, Amazon and Apple. Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases. Mr Modi's promise to cut GST by October's Diwali festival, which encompasses one of India's biggest shopping seasons, follows previous commitments to overhaul it by reducing the number of rate brackets under the 2017 tax regime. A group of ministers have been preparing a report that will consider merging tax slabs and lowering rates on some products. In February, India cut personal income tax for some individuals to boost spending. Earlier this month, the central bank kept interest rates steady, following a 100 basis point cut this year so far. The government has proposed to the ministerial panel that it recommend reducing taxes on mass use items as well as on goods used by women, students and farmers to boost consumption and enhance affordability, the finance ministry said in an X post. The government will move towards making GST a simple tax with two rate slabs, one standard and another merit, it said. Special rates will be applicable only for a few select items. REUTERS
AsiaOne
a day ago
- AsiaOne
India, Singapore in talks to boost ties in industrial parks, semiconductor sector, Singapore News
Singapore and India reaffirmed close ties and discussed areas to strengthen bilateral collaboration during the third India-Singapore Ministerial Roundtable (ISMR) on Wednesday (Aug 13) in New Delhi. In a doorstop interview after the conclusion of the ISMR, DPM Gan said that Singapore's six-member delegation held productive talks with their Indian counterparts and detailed potential collaborations regarding sustainability, digitalisation, skills development, healthcare and medicine, advanced manufacturing, and connectivity. In particular, DPM Gan highlighted interest from Singaporean companies to set up a semiconductor ecosystem between the two nations in hopes of strengthening their supply chains. Citing the "very long and complex" supply chains where different semiconductor parts are often manufactured at separate locations, DPM Gan said that it is important for businesses to diversify their pipelines so that they are less susceptible to disruption, alluding to the external disruptions caused by US tariffs. "This will also give us more options and more alternatives in terms of where we source our components from and where we sell our products to," he added, also mentioning pharmaceuticals, which is another sector with elaborate supply chains. According to DPM Gan, many local companies and MNCs operating in Singapore are particularly interested in exploring how they can integrate their processes and invest in India. Developing an ecosystem between the two countries is "a win-win proposition for the semiconductor industry", he said, adding that it is important for Singapore to continue to work with its trading partners, regardless of the tariffs. "From Singapore's point of view, it will allow our semiconductor industries to be more resilient in terms of the supply chain. For India, this will create investment opportunities and job opportunities for the Indian economy." Promoting sustainability in trade Both countries also discussed the possibility of developing sustainability-related industrial parks in India, said DPM Gan. This comes amid the issue of climate change and the resultant interest from businesses to move towards a low-carbon future, he said, which India will focus on when developing new industrial parks. These parks will be developed with an added emphasis on promoting sustainability through recycling and waste treatment, in addition to using greener energy sources rather than the traditional fossil fuels. On the investment side, DPM Gan also said that the two nations are looking for interest among sustainability-related industries. "We are discussing with the Indian government on how to conduct a process in accordance to rules and regulations to ensure that the park will be successful," he said, adding that they are discussing the logistics of requesting proposals from interested parties. Along with DPM Gan, the Singapore delegation included Coordinating Minister for National Security and Minister for Home Affairs K Shanmugam, Minister for Foreign Affairs Dr Vivian Balakrishnan, Minister for Digital Development and Information Josephine Teo, Minister for Manpower and Minister-in-charge of Energy, and Science and Technology Dr Tan See Leng, and Acting Minister for Transport and Senior Minister of State for Finance Jeffrey Siow. The Indian delegation comprised of Minister of Finance and Corporate Affairs Nirmala Sitharaman, Minister of External Affairs Dr S Jaishankar, Minister of Commerce and Industry Piyush Goyal, and Minister of Electronics and Information Technology, Railways, Information and Broadcasting Ashwini Vaishnaw. Six business leaders from Singapore and 10 from India also participated in the ISBR, where they provided proposals to facilitate business collaboration between the two nations amid the current volatile and uncertain global landscape. [[nid:720942]]
